Student Activity TrainingStudent Activity Training20082008

Massena Central School DistrictMassena Central School DistrictCynthia M. Yager, Assistant SuperintendentCynthia M. Yager, Assistant Superintendent

Natascha L. Jock, District TreasurerNatascha L. Jock, District Treasurer

What are these activities for?

• For students by students• Learn proper business practices and

procedures– Budgeting– Business planning– Profit and loss

• Acquire money handling skills• School community service

Organizational Requirements

• By-laws (Charter)• Elected Officers:

– President– Vice-President– Treasurer– Secretary

• Faculty Advisor• Central Treasurer • Regular Meetings• Business plan• Profit & Loss

Statements

Student Activity Books

• Policies &

Procedures Manual

• By-laws (Charter)

• Annual Business

Plan

• List of officers

• Cash Ledger

• Copies of all receipts

& purchase orders

• Minutes from

meetings

Faculty Advisor Job Duties

• Guide & advise students• Safeguard monies & verify deposits• Review purchase requests• Assist with profit & loss statements• Does NOT prepare deposits, cash

ledgers, requisition or voucher forms• Advisor should NOT treat activity as

their own

Student Activity Treasurer Job Duties

• Receive & deposit all money to Central Treasurer in Central Business Office

• Follow purchasing policies & procedures• Maintain accurate cash ledger balances• Determine availability of sufficient funds • Follow NYS Sales Tax guidelines• Complete Fundraiser Request Forms &

Profit and Loss Statements

Central Treasurer Job Duties

• Maintain custody of cash for all clubs• Prepare & pay sales tax• Prepare bank reconciliations for activity

accounts• Submit reports to Student Activity

Treasurers • Maintain separate cash records for all

activities• Collect & prepare annual audit

information

Central Business Office Functions

• Prepare purchase orders from requisition forms

• Issue checks to pay for purchase orders & voucher forms

• Audit all payments & receipts• Shipping & receiving department

checks in all goods

Business Plan

Should answer the following questions:

– What will the function of the club be?– What kind of activities do we want to do?– How much will these activities cost?– How can we raise funds?– Who is our competition?– Where is your market & location?

Cash Ledger

• Can be done in Excel if signed by Activity Treasurer

• Treat as checkbook register• Reconcile at least quarterly• Must include:

– Receipt # or PO #– Complete description – Running Balance

Cash Collection Procedures

• Collected by the Student Activity Treasurer

• Counted by two people from the club

• NO money taken home or left unsecured

• Checks must be made out to “Massena Central School District”

• NO personal check cashing or transactions

Deposits must be accurate

Deposit Procedures

• Cash must be wrapped appropriately & sealed in a money bag

• List check numbers & amounts in Excel

• Deposits brought to the Central Treasurer immediately after cash collection.

• Central Office Hours:

– Monday – Thursday 7:00 AM to 4:00 PM

– Friday 7:00 AM to 1:00 PM

• Cash pick up is available if necessary» Call Mrs. Jock at Ext. 3012

Deposit Form

• Indicate if taxable sales• Must reconcile sales to cash• Verified & signed by Advisor &

Student Treasurer• Central Treasurer will issue a pre-

numbered receipt when money is received

• Record deposit in activity ledger book

Cash Disbursements Procedures

• No order placed without approved purchase order

• Bidding requirements must be followed

• Receipts can not be dated prior to purchase order

• After goods/services received, send signed requestor copies to business office

• Payments processed bi-weekly

• Unauthorized purchases become the responsibility of the purchaser

Requisition Form• Complete requisition form for each purchase • Signed by the following:

• Activity Treasurer• Advisor• Building Principal • Assistant Superintendent

• Copy of approved minutes must be attached to requisition form

• Purchases must be delivered to the shipping & receiving department

Voucher Form

• Reimbursements are limited, requisition and purchase order process must be followed

• Preauthorization is required for all spending

• On a limited basis reimbursements can be made for legal club authorized expenses

– Claim forms must be filled out completely

– Club minutes authorizing the expense must be attached

Tax Exempt Status

Clubs are Clubs are NOTNOT included in the included in the District’s tax exemption. Clubs are District’s tax exemption. Clubs are

subject to sales tax per NYS law. subject to sales tax per NYS law. Without exception, it is illegal for Without exception, it is illegal for

clubs to use the District’s exemption clubs to use the District’s exemption certificate and/or number.certificate and/or number.

Sales Tax• Must be collected on all taxable

fundraisers/sales• Must be paid on all taxable purchases• Sales tax paid and collected should be

reported to the Central Treasurer• If not reported, it will be charged to your

account quarterly

Examples of Sales Tax

Non-Taxable

• Sale of newspapers or periodicals

• Admission to dramatic or musical arts performances

• Bake sales• Advertising• Entry fees• Food sales

Taxable

• Prepared food sold in heated state

• Candy bars sales• Clothing or jewelry• Admission to dances• Yearbook sales• Car washes• Plant sales

When in doubt, ask the Central Treasurer

Fundraiser Request Form

• Submitted & approved 2 weeks prior to fundraiser

• Approved by Principal and Central Treasurer

• Include meeting minutes with all details

• It illegal to collect monies for charitable organizations during the school day from children

• Gambling/games of chance are not allowed; including 50/50 and other sorts of raffles

Profit and Loss Statements

• Submit 1 week after the end of fundraiser• Indicate fundraiser performance• Fundraiser must be well planned & monitored • Detail all revenues & expenditures • Must include original estimates from

fundraiser request form

Club Meetings• Should be held monthly

• Minutes for all important decisions must be maintained:

– Business Plan

– Fundraisers

– Donations

– Purchases

– Profit and Loss Reports

– Voting results (Majority Rules)

Miscellaneous Rules

• Cash must be deposited in a timely manner

• Deposits must be accurate

• No outside bank accounts allowed

• Purchase through proper procedures only

• All monies must go through the Central Treasurer

Audit Requirements• NYS Comptroller mandates annual audits by

an external audit firm to safeguard funds• The Internal Claims Auditor audits all

expenses• The Central Treasurer audits all deposits• Semi-annual audits of activity books

performed (December and June)• Audits ensure that proper procedures are

followed & funds are handled appropriately

Issues That Could Lead to Fraud or Other Accusations

• Unauthorized bank accounts/petty cash

• Personal check cashing

• Unauthorized purchases

• The expense is more than the cost of goods sold

• Missing funds

• Goods shipped to personal addresses

External Audit Finding 2004-2008

Condition: During our discussion of Extra Classroom Activities, we noted that some of the activities do not maintain proper by-laws, constitutions, minutes of meetings or student general ledgers. Many of the ledgers are being kept by advisors and not filled out until the treasurer sends the treasurer’s report to the club. If accounts are not reconciled on a monthly basis, fraud or misappropriation of money could occur during the year without being noticed. Without proper documentation of minutes and constitutions, there is no proof that the money is actually being spent for what the students want and agree upon. This could also lead to potential misappropriation of student funds. During the year 05-06, we noted that at least one club did not submit cash receipts to the Central Treasurer in a timely manner. Also, cash receipts from fundraisers were not deposited, but rather spent to purchase items for the club.

Carl Seyfarth, CPA

External Audit Finding 2004-2008

Recommendation: We recommend that there be a discussion with all student activities regarding the requirements they should be following. All clubs should draft constitutions, maintain minutes to all meetings and a student general ledger. Treasurer’s reports should be sent to the student activities at least once a month and reconciled to the student general ledger by the treasurer of the activity. The students should maintain student ledgers in a timely fashion and entries should be made prior to receiving the treasurer’s report. All cash receipts should be submitted by students to the Central Treasurer in a timely manner. All purchases should be made using the proper procedures and disbursements should be made by the Central Treasurer. Advisors should not use personal funds or credit cards for club activities.

Carl Seyfarth, CPA

Consequences for Noncompliance

Failure to comply with any of the policies & procedures set forth

may jeopardize the existance of your club and the ability to

participate in future fundraising activities.

Resources and Contacts

Advisor ___________ Ext. ____

Principal ___________ Ext. ____

Accounts Payable Clerk Rebecca LeBoeuf Ext. 3013

Central Treasurer Natascha Jock Ext. 3012

Asst Superintendent Cynthia Yager Ext. 3006

We are here to assist you!!

When in doubt…….. When in doubt…….. Check with the Check with the

Central Treasurer!!!Central Treasurer!!!

When in doubt…….. When in doubt…….. Check with the Check with the

Central Treasurer!!!Central Treasurer!!!The only stupid question is The only stupid question is the question not asked!!!!the question not asked!!!!